Bowling Green, KY, May 9, 2014 (GLOBE NEWSWIRE) -- Constellium N.V., a European aluminum company and UACJ Corporation, a Japanese aluminum company, today announced their intention to establish an aluminum production facility in Bowling Green, expecting $150 million in capital investment and 80 new jobs. This is the largest capital investment for the South Central Kentucky region in more than a decade, following a record setting year in 2013.
"This is a huge investment in Kentucky--one that further solidifies our role as a key player in the auto industry," said Gov. Beshear. "It's also exciting to see companies from two different continents jointly choose Kentucky as the place to manufacture an innovative product. I want to thank both Constellium and UACJ for putting more Kentuckians back to work, and I look forward to seeing this partnership's impact on vehicles around the world."
"Bowling Green is the right place for this plant, particularly because its central location will allow us to serve automotive OEMs across the US with our advanced and innovative range of products," commented Laurent Musy, President of Constellium's Packaging and Automotive Rolled Products business unit. "The availability of a highly skilled local labor force and the entrepreneurial spirit of the area were the decisive factors in choosing the city of Bowling Green and the state of Kentucky, which has been very supportive during the decision process".
The announcement follows a signed Joint Venture Agreement between the two companies to supply aluminum Body-in-White sheet to the North American automotive industry. The finalization of the joint venture remains subject to regulatory approvals which are currently expected in the second half of 2014.
"This project is very significant for UACJ in terms of our Body-in-White market strategy. We look forward to supplying automotive OEMs throughout the US with advanced products utilizing the technologies each party has separately developed in EU and Japan. We welcome this Joint Venture with Constellium to tackle the strategic automotive market in the U.S." said Mitsuru Okada, CEO of UACJ. "Both companies have been working hard together in the spirit of equal partnership, allowing us to finalize the agreement in a timely and efficient manner."
The Joint Venture will have an initial target capacity of 100,000 metric tons (approximately 220 million pounds) supplied by cold rolled coils from both partners' rolling mills. The facility, which will be located in the Kentucky Transpark, will be designed to allow for additional expansion beyond this target. Construction for the project is slated to begin summer of 2014.
"This is a great opportunity for UACJ and Tri-Arrows to participate in this dynamic growth segment for aluminum along with our partners at Constellium", said Patrick Franc, President and CEO of Tri-Arrows Aluminum Inc. "We are also very pleased with the choice of Bowling Green, which is in close proximity to the Logan rolling mill."
Tri-Arrows Aluminum, which is headquartered in Louisville, Kentucky is a subsidiary of UACJ. Tri-Arrows manufactures its base aluminum coils at its joint venture operating mill at Logan Aluminum, Inc. located in Russellville, Kentucky. Logan is one of South Central Kentucky's largest employers with more than 1,000 full time employees.
"It is our privilege to welcome this joint venture to Bowling Green," stated Chamber Board Chairman, John Mark Fones. "We recently celebrated a record setting year in economic development in 2013 and what a way to kick off 2014; with the largest project we have seen in more than a decade. We would like to sincerely thank each organization and individual who took part in making this project a success. Our congratulations to both companies on their joint venture, we look forward to their success in South Central Kentucky."
The success of the project is a result of collaborative efforts of local and state elected officials, as well as numerous organizations across the region.
"The leadership and collaboration in Bowling Green, Warren County and the state of Kentucky continues to propel our community forward and it is an honor to be part of such impressive economic growth. Warren County has seen 10 announcements in the last 18 months totaling more than $285 million in capital investment and over 450 new jobs. We are truly fortunate to welcome this international joint venture to the Kentucky Transpark as the largest project we have seen in more than a decade. They will be an asset to the corporate community here and will have a significant impact. We applaud them for their venture and congratulate them on their decision," said Judge Executive Michael Buchanon.
The project is not only the largest capital investment in South Central Kentucky in more than decade, but it is also the largest total capital investment the Commonwealth has seen thus far in 2014. The total capital investment of this project surpasses the largest announcement for the region in 2013, which ranked as the largest capital investment by a new firm and the third largest overall capital investment in the Commonwealth for the 2013 year.
"This is an incredible win for Bowling Green," stated Mayor Bruce Wilkerson. "Not only is the joint venture investing in the Kentucky Transpark, they are investing in our community as well. The attraction of international companies such as Constellium N.V. and UACJ Corporation puts our region on the map as the place to be for companies looking to locate their business. We truly appreciate the confidence the joint venture has in our area and we welcome them to Bowling Green."
This is the first economic development announcement in 2014 for the Bowling Green Area Chamber of Commerce following a record setting year in 2013 with more than $260 million in capital investment and the creation of over 400 new jobs.
Constellium is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €3.5 billion of revenue in 2013. www.constellium.com
UACJ was established in October 2013 when Furukawa-Sky Aluminum and Sumitomo Light Metal Industries integrated their business operations. Both companies featured a distinguished history as aluminium producers in Japan. Together, their annual capacity for rolled sheet products exceeded 1 million tons, making them the largest such manufacturer in Japan and the third largest in the world. www.uacj.co.jp.
About Tri-Arrows Aluminum Inc. (TAA)
Tri-Arrows Aluminum, Inc. was established in August 2011 when a Consortium of then- Sumitomo Light Metals Industries and Furukawa Sky Aluminum, in addition to Sumitomo Corporation and Itochu Group purchased the former ARCO Aluminum, Inc. TAA has long been an innovative leader in the supply and marketing of rolled aluminium can sheet to the North American container industry with annual production exceeding 325 thousand tons. www.triaa.com.
About the Bowling Green Area Chamber of Commerce
Incorporated in 1935, the Bowling Green Area Chamber of Commerce is a 5-Star Accredited Chamber by the U.S. Chamber of Commerce and was named the 2009 Chamber of the Year by the American Chamber of Commerce Executives. As the fourth largest chamber in Kentucky, the Chamber serves as a premier business advocate for its more than 1,100 partners and is the driving force for economic development in South Central Kentucky. Its primary goals are to promote growth and success in the business community, reaching its small business partners and those in large industries alike. With leadership programs, governmental relations projects, educational initiatives and involvement opportunities, the Chamber aims to support the community and its neighbors in order to enhance the business climate and continue to grow the region.
CONTACT: Kim Phelps, Director of Communication, 270-781-3200, firstname.lastname@example.org
Source:Bowling Green AreaChamber of Commerce